Annual Report 2023
A vision for the future
A Message from the President & CEO
Dear members,
I want to start by expressing my heartfelt gratitude to all of you. Thank you for being part of this vibrant and diverse community – you are the motivation behind our vision to be a force for good for all Arizonans and we are truly honored to be part of your journey.
Last year was a pivotal year for Arizona and our members who faced unexpected economic challenges marked by record inflation and uncertainty in our marketplace. Despite the difficulty, you persisted with resilience and grace, and we are grateful that you continued to see OneAZ as your trusted banking partner.
For our OneAZ family, 2023 was a remarkable year of transition and transformation. Upon joining the OneAZ Team as President & CEO last May, I knew I was joining a special organization filled with a team of dedicated associates who work tirelessly to deliver an exceptional banking experience. What I never could have imagined was the level of creativity, passion, enthusiasm, and potential that was waiting to be unleashed. As someone who has spent nearly his entire life committed to the credit union movement, I can say with unwavering certainty that OneAZ is unmatched in the country. No other team is working as hard to deliver an outstanding experience for every member as our OneAZ associates.
Our vision for OneAZ is to stand at the vanguard of innovation by perpetually improving technology and processes, setting the trend for a more connected, more convenient, and more personalized banking experience. To do this, OneAZ commits to relentless innovation so that we’re always cultivating fresh, relevant, and competitive solutions that serve the needs of all Arizonans. We will leverage our past successes and build on our 72-year legacy of serving Arizonans. However, to be successful in such a fast and dynamically changing industry, we must positively challenge every facet of our operations. The paradigms of banking have shifted and OneAZ must rise to meet the moment. It is going to be a journey for our team, and we’re grateful for your patience as we embark on this transition.
I’ll outline some of the ways we will inspire dreams and drive growth and prosperity for our members, associates and the communities we are honored to serve:
Digital banking technology is happening faster than ever and OneAZ must be at the forefront of driving innovation and transformation. Today’s consumers demand simplicity, ease of use, and personalization from their financial institution. Our members’ expectations of us are no different. Meeting these expectations not only requires OneAZ to have the best technology, but to also have interconnected platforms and streamlined processes. Right now, we’re laying the necessary groundwork to reshape our technological infrastructure so that members receive some of the highest quality banking experience in the country.
Credit unions are unique in their spirit of service to members and the community. Our members take pride in knowing their financial institution isn’t just dedicated to providing exceptional banking services but is engrained in the fabric of Arizona and driven by shared values. A strong community is good for all of us, and you can always count on OneAZ to stand with our communities to build a better tomorrow. Through community support and local business partnerships, OneAZ will serve as a beacon of hope for our members.
Our commitment to uplifting lives in the communities we serve is stronger than ever. Since 2016, the OneAZ Community Foundation has provided over $1.6 million in donations to local Arizona nonprofit organizations. These nonprofits are feeding families facing hardship, teaching young adults the importance of financial education, protecting children from homelessness, and so much more. As OneAZ grows and serves more Arizonans, our dedication to improving lives in your neighborhoods will only get stronger. In the coming years, we’re going to expand our giving and focus our support for organizations that can truly have a huge impact on Arizona.
The future is so bright at OneAZ! We’re thrilled to be able to serve you and your families. Again, I want to thank you for your trust and support as we travel together on this incredible journey.
Respectfully yours,
A Message from the Chairman
Dear members,
On behalf of the OneAZ Credit Union Board of Directors, I want to thank you for your continued membership and trust in OneAZ to deliver valuable financial solutions for you and your family. In 2023, OneAZ experienced tremendous growth and transformation, reaching more Arizonans than ever before. I am proud to say that OneAZ remains a strong, stable and financially sound institution dedicated to improving the lives of ALL Arizonans.
Your Board of Directors is keenly aware of the changing landscape of banking in the 21st century. That landscape is dominated by large banks, fintechs, and online banking platforms that all serve as competitors to locally based, service-driven credit unions like OneAZ. We will not only survive in this digital age, but we will thrive by delivering exceptional ease of service on technologically relevant platforms with simplicity and speed. In short, we want to operate with the speed and convenience of a fintech while maintaining the heart and soul of a credit union.
To ensure that our team has the proper vision and strategy to realize this objective, we welcomed Brandon Michaels in May. Brandon is an exceptional leader, a top talent in the financial services industry, who understands the importance of digital innovation to drive member service. With his leadership, OneAZ has aligned on a strategic vision for the future that places a renewed emphasis on digital technology, improved processes, and operational efficiencies. For you, the members, this will translate to an enhanced experience that makes banking with us simpler and easier.
This future forward strategic vision is rooted in our dedication to improving the lives of our members and their communities. That commitment runs deep through all levels of OneAZ – from the Board Room to the bankers, tellers and Member Care Center associates. Rest assured, that same level of relationship-based service will never change, it will only be enhanced and improved as we advance our technological platforms. I want to take this opportunity to thank our associates for their tireless dedication to service. They are the lifeblood of our organization, and their commitment to our members is inspiring.
For Board members, our priority is and always will be the well-being and trust of our members. We take your needs seriously and we’re constantly engaged with the Credit Union’s leadership to ensure that everything we do serves your interests. I am so incredibly proud of the work done in 2023 to uplift the lives of our members and I look forward to the future of serving your needs. Thank you for your support for OneAZ Credit Union!
Respectfully yours,
2023 Year in Review
During this pivotal year of transformation at OneAZ, our underlying mission remained constant and strong. OneAZ aims to perpetually improve technology and processes, setting the trend for a more connected, more convenient, and more personalized banking experience. We’ll leverage our past successes and build on our 72-year legacy of serving Arizonans. Whether you’re new to the credit union or are a long-term member, we’re grateful to serve you and thank you for your patience as we embark on this transition.
Here are a few ways we served Arizonans in 2023:
$2,958,563,655
Total Deposit
Balance
$71,252,381
Business
Loans
$202,217,340
First
Home Loans
185,000
Total Membership
6,191
Credit
Cards
20,478
Total Loan
Originations
20
Branches
$102,218,006
2nd Mortgage and HELOC
$475,000+
Community
Giving
$3.4 Billion
Total
Assets
OneAZ Community Foundation
Improving Communities Across Arizona
The OneAZ Community Foundation upholds our mission of truly improving lives in the communities we serve by supporting nonprofit organizations throughout Arizona. The Foundation is funded largely by members – each time a member uses their OneAZ debit card we donate one cent to the OneAZ Community Foundation. This means that as OneAZ grows, our ability to change lives in our members’ neighborhoods also grows.
2023 Giving
-
Community
Impact Grant$330,000
-
Legacy Grant
Program$142,000
-
AZ
Gives Day$3,200
-
Since
2016$1.6M
Total Giving:
$475,200
Community Service
OneAZ associates contributed
3,564
total hours of community service in 2023.
Who We Help
The OneAZ Community Foundation’s charitable giving is guided by Five Pillars of Support. By supporting nonprofit organizations with missions, programs, or initiatives that uphold these Five Pillars, we ensure that our giving builds strong communities across Arizona.
Children's
Health
Food
Banks
Financial
Education
Veterans'
Interests
Local Youth
Programs
The Impact
Legacy Grants
We donated $142,000 to five nonprofit organizations as part of our Legacy Grant program. These organizations were chosen because each presented an opportunity for OneAZ to make a significant impact on the community that will last for years to come.
Legacy Grant Awards
$60,000
Foothills Food Bank & Resource Center, Phoenix
Funds will help build a new facility and resource room that will allow the organization to enhance its capacity to address the underlying factors contributing to food insecurity.
$20,000
Sleep in Heavenly Peace
This grant will go towards the materials needed to build and assemble 80 bunk beds and bedding for children in need across the Valley.
$32,000
Manzanita Outreach, Cottonwood
The grant will be used to purchase a refrigerated van that will expand the organization’s ability to address the issue of food insecurity in the Verde Valley.
$20,000
Flagstaff Unified School District Foundation, Flagstaff
This grant will provide funding for two major initiatives supporting Flagstaff teachers – the FUSD Foundation Microgrant Program and the FUSD Teacher’s Closet.
$10,000
Arizona Heroes Memorial, Oro Valley
This grant will help cover building costs for the Arizona Heroes Memorial project to honor Southern Arizona’s veterans and first responders.
$80,000
$52,000
$10,000
Community Impact Grant Recipients
In 2023, the OneAZ Community Foundation achieved our biggest year yet for the Community Impact Grant program. Our annual grant program provided $5,000 grants to 66 nonprofits in the communities where our members live and work – a total of $330,000 given across Arizona! See our full grant recipient list below.
Community Impact Grants allow non-profit organizations across the state to provide a greater impact with their mission. Check out how a few of these leaders are using their funds to make a difference.
Diversity at OneAZ
We are committed to transparency and accountability on our journey towards creating an equitable banking experience for our members, an inclusive culture for our associates, and a community that uplifts the lives of all Arizonans.
Demographic Representation
OneAZ Associates
526 =
Arizona Population
62 Total Promotions in 2023
pie chart - Promotions - by gender
Gender
47 Female
14 Male
pie chart - Promotions - by
ethnicity
Ethnicity
37 White
22 Hispanic or Latino
1 American Indian or
Alaska Native
1 Asian
Management Promotions: 13
Assistant Manager: 4
Assistant Director: 2
Regional President: 1
VP: 1
Manager: 2
Regional Sales Leader: 1
SVP: 1
Gender
Ethnicity
Management Promotions: 13
Assistant Manager: 4
Assistant Director: 2
Regional President: 1
VP: 1
Manager: 2
Regional Sales Leader: 1
SVP: 1
Financial Summary
The financial report below shows that OneAZ remains a financially stable and strong credit union for its members and associates. In 2023, the dedicated work and influence of OneAZ’s associates, leaders and the executive team had a tremendous impact on the credit union’s growth and strength.
| Balance Sheet | $ Thousands | 2023 | 2022 |
|---|---|---|
| Cash and cash equivalents | $115,424 | $79,079 |
| Investment Securities | ||
| Investments | $1,025,795 | $1,186,240 |
| Loans to members, net of allowance for loan losses | $2,121,321 | $1,883,613 |
| Premises and equipment | $65,315 | $67,540 |
| NCUSIF Deposit | $26,897 | $26,622 |
| Other Assets | $29,774 | $27,557 |
| Total Assets | $3,384,526 | $3,270,651 |
| Members' share accounts | $2,961,070 | $2,966,457 |
| Borrowed funds | $180,066 | $100,000 |
| Accrued expenses and other liabilities | $22,817 | $18,766 |
| Total Liabilities | $3,163,953 | $3,085,223 |
| Total members' equity | $220,573 | $185,429 |
| Total Liabilities and Members Equity | $3,384,526 | $3,270,652 |
| Statement of Income | $ Thousands | 2023 | 2022 |
|---|---|---|
| Net interest income | $102,457 | $80,174 |
| Provision for loan losses | $7,359 | $(25,159) |
| Net interest income after provision for loan losses | $95,098 | $105,333 |
| Non-interest income | $38,200 | $41,946 |
| Non-interest expense | $108,385 | $106,915 |
| Net Income | $24,913 | $40,364 |
Treasurer's Report
Dear members,
As Treasurer of the OneAZ Credit Union Board of Directors, I am proud to report that OneAZ continues to be a strong, stable, and secure financial institution. In 2023, OneAZ experienced another strong year of membership growth. This reflects the dedication that our associates have to improving the lives of our members and their communities.
In 2023, OneAZ’s assets grew by 3.5% to reach $3.38 billion, and member loans grew to $2.12 billion. OneAZ’s capital strength of 8.55% exceeds the National Credit Union Administration (NCUA) well capitalized threshold of 7.0%.
The future is so bright for OneAZ. We are on a solid financial footing and our new leadership team is committed to ensuring that OneAZ continues to grow and prosper for years to come. As OneAZ’s membership and assets continue to grow, so will our investment in improved technology, products, and services. As a result, our associates will be better able to improve lives and deliver the best banking experience possible.
2022 8.48%
|
2023 8.55%
Respectfully yours,
Supervisory Committee Report
Your Supervisory Committee is appointed by the Board of Directors and is responsible for ensuring that the assets of OneAZ Credit Union are safeguarded; an independent audit is performed annually; account balances of the membership are verified; and appropriate policies and procedures exist to ensure compliance with management’s objectives and regulatory requirements. These responsibilities are accomplished through regular meetings with the Board of Directors, Credit Union management and staff, Risk Management/Internal Audit, external auditors, and regulators to review the Credit Union’s activities and audit results.
As of September 30th, 2023, the Arizona State Department of Financial Institutions and Insurance and the National Credit Union Administration jointly completed their annual regulatory examination. In addition, Doeren Mayhew, a national CPA firm with recognized expertise in the credit union industry, has conducted an independent audit of the 2023 financial statements and members account verification procedures. The results of our external audits reflect a continued adherence to sound internal controls and conservative business practices.
The Supervisory Committee has concluded that OneAZ Credit Union remains compliant with financial and operational internal controls and applicable regulatory requirements. We wish to express our appreciation to the Board of Directors, management and staff for their continued cooperation, compliance and dedication to the success of OneAZ Credit Union.
Henry Blanco, Chairman | Sara Click, Member | Paul Thomas, Member
2023 Board of Directors
Jon Borge
Chairman
Dr. Pearlette Ramos
Vice Chairperson
Dr. Ryan Williams
Treasurer
Georganna Meyer
Secretary
Martha Rozen
Director
Ed Sanchez
Director
Sam Wheeler
Director
Marquetta White
Director
Joseph C. Smith
Advisory Director
